Lagos: Nigeria’s Economic Powerhouse Surpasses 30 States in Revenue
Lagos State, the heart of Nigeria’s tech startup scene and economic engine, showcased its remarkable financial prowess in 2024. The state generated an impressive ₦1.26 trillion, equivalent to $857.57 million, in internally generated revenue (IGR). This represents a substantial 54.63% increase compared to the ₦815.87 billion ($554.59 million) earned in 2023. This impressive performance highlights the robust and diverse economy that has positioned Lagos as a leader not only within Nigeria but also on the African continent.
Key Drivers of Lagos’s Financial Success
Lagos’s 2024 IGR of ₦1.26 trillion significantly outperformed the combined IGR of 31 other Nigerian states, which totalled ₦1.24 trillion ($841.97 million). This group includes states like Edo, Akwa Ibom, Kwara, Kano, and many more, showcasing the immense economic disparity within the nation. A critical factor in Lagos’s revenue dominance is its substantial labour force, recorded at 6.43 million in 2023. The demographics are heavily weighted towards the 15-34 age group, with 2.7 million individuals, making the Pay As You Earn (PAYE) tax system a crucial revenue source. PAYE, the tax deducted directly from salaries, contributed ₦705.41 billion ($479.52 million) to Lagos’s revenue in 2024. This is a substantial 58.62% increase compared to the ₦444.73 billion ($302.32 million) generated by PAYE in 2023.
In conclusion, Lagos’s outstanding financial performance in 2024 demonstrates its capacity for economic growth and ability to attract investment, especially within the context of the growing African tech sector. This economic advantage sets a precedent for sustainable economic development across Nigeria and exemplifies the potential of targeted policy, a skilled workforce, and strategic investment.
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